30 May 12 | Leveson Inquiry
Business secretary Vince Cable has said he had heard of “veiled threats” to his party connected with News Corp’s bid for full control of satellite broadcaster BSkyB.
“I had heard directly and indirectly that there had been veiled threats that my party would be done over in the News International press. I took those things seriously and I was very concerned,” Cable told the Leveson Inquiry this morning.
When asked about the source of the threats, Cable, who was initially in charge of adjudicating the bid, said he believed they came in conversations with News Corp lobbyist Fred Michel but could not be absolutely certain.
In his witness statement Cable said he received reports that several of his Lib Dem colleagues were approached by News Corp representatives “in a way I judged to be inappropriate”.
“This added a sense of being under siege from a well-organised operation,” he added. “Coming from a party that had hitherto been at best ignored by News International, this was a new and somewhat unsettling experience.”
Cable was removed from his role in judging News Corp’s £8 billion bid for BSkyB, launched in June 2010, after he told two undercover Telegraph reporters in December of the same year that he had “declared war” on Rupert Murdoch. His comments led to accusations he was biased against the media mogul.
Cable said he had “offloaded pent-up feelings” in language he would not normally use, and described the situation outside his constituency surgery at the time as a “near-riot”.
Cable wrote in his witness statement that his references to “war on Murdoch” were “making the point, no doubt rather hyperbolically, that l had no intention of being intimidated. Clearly, I should not have volunteered my unprompted opinion, even in a private, confidential conversation in a constituency surgery. I subsequently apologised.”
He also wrote that he was “concerned about the unhealthy political influence of some newspaper proprietors including the Murdochs”, but added this was “not a view about the particular circumstances of the BSkyB takeover.”
Cable outlined that there were plurality problems presented by at 100 per cent ownership of BSkyB, namely that the number outlets under different owners would have been reduced and the possibility of new owners replacing management who would have influenced the choice of editors.
News Corp’s bid for the takeover was dropped last summer following the phone hacking scandal.
The Inquiry continues this afternoon.
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25 May 12 | Leveson Inquiry
A senior civil servant said today that culture secretary Jeremy Hunt’s former aide was drawn into a “web of manipulation and exaggeration” in the circumstances surrounding News Corp’s bid for a full takeover of BSkyB.
Jonathan Stephens, Permanent Secretary at the Department of Culture, Media and Sport (DCMS) told the Leveson Inquiry this afternoon that special adviser Adam Smith, who resigned after a series of emails between the department and News Corp revealed that the company was being given advance feedback of the government’s scrutiny of the bid, was “inadvertently drawn beyond what he intended to do”.
Stephens, who confirmed he had told Hunt he felt Smith should resign due to the level of “clearly inappropriate” level of contact between the department and News Corp, said it was “matter of intense regret” that the episode occurred. Lord Justice Leveson suggested it was a “calamity” for the DCMS.
“I thought the nature, context, extent and depth of the emails meant this was far beyond what could be considered appropriate,” Stephens told the Inquiry.
He added that he was aware Smith had been in touch with the corporation, but did not know News Corp lobbyist Frederic Michel was his individual point of contact.
Events over the past month have left Jeremy Hunt fighting for his political life. Yesterday a crucial memo came to light that Hunt had sent to David Cameron in support of News Corp’s £8bn bid for control of the satellite broadcaster, sent one month before he was handed the task of adjudicating the bid in December 2010.
In the memo Hunt emphasised to Cameron that it would be “totally wrong to cave in” to the bid’s opponents, and that business secretary Vince Cable’s decision to refer the bid to regulator Ofcom could leave the government “on the wrong side of media policy”.
It was also revealed that his department and News Corp had exchanged 1,000 text messages, 191 phone calls and 158 emails as the bid was under scrutiny from June 2010 to July 2011.
Over the past two days, Smith has been scrutinised about his contact with Michel, and expressed regret for the “perception of collusion” the contact created.
He revealed today that once the emails between him and News Corp were released at the end of April, Hunt had reassured him he would not need to resign, only to be told by him the next day, “everyone here thinks you need to go”.
He resigned from his post last month following the emails’ release, conceding that his contact with News Corp “went too far”.
Hunt, who is scheduled to face questioning over the matter at the Inquiry next Thursday, has contended he acted impartially and within the ministerial code. Today David Cameron said he does not regret handing the bid to Hunt, stressing he acted “impartially”.
The Inquiry continues on Monday.
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25 May 12 | Leveson Inquiry
Next week is set to be one of the most gripping yet in the Leveson Inquiry into press standards.
Monday has been reserved for former prime minister Tony Blair, who will likely be questioned about his close relationship with media mogul Rupert Murdoch, whose tabloid the Sun famously switched its long-standing Conservative allegiance to back the Labour party ahead of the 1997 general election.
Business secretary Vince Cable is scheduled to appear on Wednesday. It is likely he will be quizzed about News Corp’s £8bn bid for the takeover of satellite broadcaster BSkyB, particularly his admission that he had “declared war” on the Murdoch-owned company, which led to his being stripped of responsibility for the bid.
But the highlight will surely come from Thursday’s sole witness, culture secretary Jeremy Hunt, who is fighting for his political life after the revelation of a November 2010 memo he sent to David Cameron in support of News Corp’s £8bn bid for control of the satellite broadcaster one month before he was handed the task of adjudicating the bid.
In the memo Hunt emphasised to Cameron that it would be “totally wrong to cave in” to the bid’s opponents, and that Cable’s decision to refer the bid to regulator Ofcom could leave the government “on the wrong side of media policy”.
The memo has further weakened Hunt’s grip on power, already in doubt after last month’s revelations that his department gave News Corp advance feedback of the government’s scrutiny of the BSkyB bid. Evidence shown to the Inquiry yesterday during News Corp lobbyist Frédéric Michel‘s appearance showed over than 1000 text messages had been sent between the corporation and Hunt’s department, along with 191 phone calls and 158 emails.
The Labour party has since upped the volume on its calls for Hunt to resign, arguing he was not the “impartial arbiter” he was required to be.
Hunt has maintained he acted properly and within the ministerial code, while David Cameron said today he does not regret handing the bid to Hunt, stressing he acted “impartially”.
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24 May 12 | Leveson Inquiry
Revelations filled Court 73 at the Royal Courts of Justice today, as Adam Smith, former special advisor to Jeremy Hunt, and Frédéric Michel, chief lobbyist for News Corp took to the stand at the Leveson Inquiry.
Adam Smith, who resigned from his position as Jeremy Hunt’s aide after the Inquiry released a collection of emails between himself and Michel, told the court that David Cameron had appointed Hunt to oversee the BSkyB bid, despite demonstrating his support for the move to the Prime Minister.
Smith explained that Hunt sent the Prime Minister a memo, firmly taking the side of James Murdoch, dismissing and criticising the BBC. In the memo, Hunt also tells Cameron the bid should not be blocked, and asks him to intervene in the decision which should have been the sole responsibility of Vince Cable.
The former aide described a “very close working relationship” with Jeremy Hunt, and described that the pair had an understanding of what was expected of him in his role as special advisor. He added that he and his team were unfamiliar with a “quasi-judicial role”, until Hunt was appointed to oversee the bid, but explained that he approached it in the same way as every other policy.
He added: “My understanding was that Mr Hunt had to decide on the media plurality issues, and Mr Hunt himself had to decide on the bid. There was no difference in the way I approached it.”
Describing his role as Hunt’s advisor, Smith explained acted as a point of contact for organisations wishing to speak to the Secretary of State. He said he would be on the “receiving end of people phoning up to have a grumble about a process”. With particular focus on the BSkyB bid, Smith told the court he acted as “a buffer and a channel of communication” for News Corp.
When asked by Robert Jay QC whether he felt the assertion that Hunt was a “cheerleader” for News Corp as true, Smith disagreed, stating: “He didn’t really have that much of a relationship with ether of the Murdoch’s — he tended to deal with, as the inquiry has heard, Michel.”
Towards the end of his brief spell of evidence, which will continue tomorrow, Smith told the court that his views on the bid which were based purely on expert evidence, were broadly the same as Hunt’s. He added: “I didn’t particularly mind either way whether it happened or not. In a funny sort of way I didn’t see what everyone was getting so worked up about.”
In a much longer session of evidence, Jay thoroughly questioned Frédéric Michel on the emails exchanged between himself, Jeremy Hunt and Adam Smith. Jay detailed more than 1000 text messages which were sent between News Corp and the bid office, along with 191 phone-calls and 158 emails.
Michel insisted to the court that he was under the “impression” that Hunt was aware of the details being passed to him by Smith, in relation to the BSkyB bid, and believed that the “feedback” he was receiving from the aide had been discussed with Hunt. Michel added that the purpose of his contact was to “check the temperature at Westminster.”
The lobbyist also told the court that he received no legal advice into the meaning of a quasi-judicial role, but was aware it was regarded as inappropriate to have discussions with the Secretary of State.
He said: “It was the first time I had to deal with such a transaction — I didn’t have specific detailed reminder of what it meant to have a quasi-judicial process. I was never of the view that it was inappropriate to try to put the view to these offices. The legal team assessed that they key element of a quasi-judicial process was not to have inappropriate contact with the secretary of state.”
Despite that, Jay outlined a range of text messages and emails contacting Hunt, and raised the question of whether his contact with Smith was appropriate. Michel consistently denied that the contact was inappropriate, and stressed that Smith did not offer him a “running commentary” of the proceedings related to the bid.
Michel said: “Smith gave me updates on timings, process, atmospherics of the day. We were in contact a lot and I guess he was being helpful on the process. I think running commentary is a very broad definition. I think it was much more precise than chit chat commentary.”
He added: “Adam has always been a very warm, professional, available adviser, and always very diligent in his work with me. The only interactions I have had with him were always professional and reliable.”
Adam Smith will appear before the inquiry to complete his evidence tomorrow morning, and Jeremy Hunt is expected to be called to give evidence next week.
